8/25/2006 @ 8:50AM

Li Ka-shing Can't Take It With Him

Another day, another multi-billion dollar donation to charity. He could be following the latest trend among the ultra-rich or just choosing a sensible way to run through a colossal amount of cash. Either way, Li Ka-shing– known as “Superman” in Hong Kong and Earth’s 10th richest man everywhere else–has just become the latest ageing billionaire to announce that he is donating a sizeable chunk of his wealth to charity: one third of an $18.8 billion fortune.

The announcement comes after Warren Buffett, the world’s second richest human being, pledged in June to gradually give away $30.7 billion of his fortune to the Bill and Melinda Gates Foundation, marking the biggest charitable commitment in history.

Now Li, a 78-year-old former high school drop, has said his money will go to the Li Ka-Shing Foundation, an organization which he’s called his third son. “[The donation's] size will not be less than one-third of my fortune,” he told reporters during an earnings announcement for his two corporate behemoths, Hutchinson Whampoa and
Cheung Kong
Holdings. Some 90% of the funds will reportedly be invested in Hong Kong and mainland China.

“The foundation is set up for charitable work and none of my family members or the Foundation boards are authorized to spend the funds,” he was quoted as saying by China Daily. The billionaire father of two said he would not be transferring shares from his two main companies, as Buffett has chosen to do. Instead he’ll reportedly donate “non-core” assets.

Having set up the foundation in 1980 Li has already committed just shy of $1 billion to “numerous charitable activities,” including medical and educational projects, according to his foundation’s Web site.

“The Cheung Kong Group of Companies also made many contributions under the procurement efforts of Mr. Li,” the foundation says. In June 2005, Li donated $180 million to University of Hong Kong and another $40 million to the University of California, Berkeley.

Li’s donated share of his fortune could gradually swell considering the growth rate of his two companies. On Thursday, Hutchinson reported that its half year profit doubled to $2.42 billion.